By SIMON COLLINS, science reporter
Auckland's technology-based businesses are launching a hand-holding scheme for start-ups which could boost the regional economy by $30 million a year within five years.
The Auckland Technology Network, which is now forming a governing board, plans to apply in the next three weeks for a $2 million regional development grant from NZ Trade and Enterprise.
It has lured the founder of a similar network in Scotland, Ian McDonald, to try to replicate the success of the Scottish "Silicon Glen" on the Waitemata.
McDonald, 44, believes the network could add $30 million a year to the region's high-tech revenues and create 800 extra fulltime-equivalent jobs simply by helping new start-ups get good advice, good contacts - and cash.
"We aim to take 18 months off a company's development cycle," he said.
The network will not invest in start-ups itself, but will hand-pick "round tables" of people who have the knowledge and contacts to assess business plans and get the businesses ready to seek investors.
"If a technology company needs money to develop an overseas market, it has to be able to put forward a credible proposition to investors," McDonald said.
The network "gives you the opportunity to make your pitch to a small round table group - perhaps an investor, another entrepreneur, a market professional, a lawyer, someone from the NZ Trade and Enterprise beachhead programme, a unit of people that will understand your business and spend two hours with you talking about your business and your ambitions.
"At the end of that, the board will advise on your next steps.
"It's a hands-on, one-to-one approach."
The roundtable meetings start this week without waiting for Government funding and will be free, although businesses will be encouraged to pay a network membership fee of $250 to $500 depending on the business size.
"We fully expect to get $500,000," McDonald said.
Apart from corporate sponsors, local councils are expected to chip in on top of their support to the Auckland Regional Economic Development Strategy, which hatched the network scheme.
It will serve businesses in information and communications technology, biotechnology, niche manufacturing and high-tech applications in food and beverages and materials.
Connect Scotland, which McDonald founded in Scotland in 1996 and led until this year, has helped hundreds of high-tech companies with advice.
McDonald also helped to found a Global Connect organisation linking similar groups in San Diego, Sweden and other countries, and he hoped that would help provide contacts for New Zealand businesses entering those markets.
$30m boost eyed for Auckland
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